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DECISION

Amending and supplementing a number of articles of the Prime Minister's Decision no. 53/2001/QD-TTG of April 19, 2001, on policies towards border-gate economic zones

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 16, 2002 Law on State Budget;

Having considered the proposal of the Minister of Planning and Investment in Report No. 7938/BKH-QLKTTW of December 9, 2004, and the comments of concerned ministries and localities,

DECIDES:

Article 1.- To amend and supplement a number of articles of the Prime Minister's Decision No. 53/2001/QD-TTg of April 19, 2001, on policies towards border-gate economic zones, as follows:

1. Clause 2 of Article 1 is amended as follows:

"2. It is allowed to establish tax-suspension areas in border-gate economic zones. A tax-suspension area means an area with solid fencing walls, separating activities in the tax-suspension area from those in functional areas in the border-gate economic zone and Vietnam's inland, and with customs stations for supervision and inspection of outbound and inbound goods. The following business activities are available in a tax-suspension area:

- Logistic services;

- Goods production and processing;

- International trading;

- Exhibitions for introduction of products.

The establishment of tax-suspension areas shall be decided by the presidents of the People's Committees of the provinces having border-gate economic zones."

2. Clause 1 of Article 2 is amended as follows:

"a/ Investment in construction of border-gate economic zone infrastructure, aiming to promote socio-economic development, improve the people's lives and ensure border security and defense. The central budget shall provide partial supports to local budgets for infrastructure construction.

b/ The central budget shall provide supports for investment in essential infrastructures for activities of border-gate economic zones (infrastructure works in border-gate economic zones and other works which are outside border-gate economic zones but directly serve such zones). Such supports shall be provided for border-gate economic zones which have poor infrastructure but have development potentials and an important role in export, import, exit or entry, and generate budget revenues.

c/ The level of central budget supports for border-gate economic zones shall depend on specific investment projects, the extent of difficulties in localities, and the capability of annual central budgets.

d/ The People's Committees of the provinces having border-gate economic zones shall, based on the detailed planning of border-gate economic zones, determine local investment demands and resource-balancing capabilities in order to make lists of investment projects on border-gate economic zone infrastructure which need investment supports from the central budget. The provincial People's Committees shall formulate specific investment projects and proposals for supports from the central budget; the Ministry of Planning and Investment shall assume the prime responsibility for summing up the projects and reach agreement with the Ministry of Finance before reporting them to the Government for submission to the National Assembly for decision to provide additional capital for infrastructure investment if the state budget can so balance.

e/ The provincial People's Committees may use land use levies to build infrastructure and create sources of capital for ground clearance for development investment in their localities, with priority given to border-gate economic zones."

Article 2.- Organization of implementation

1. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries and agencies in, promulgating a circular guiding the financial regime applicable to border-gate economic zones.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with concerned ministries and agencies in, elaborating an operation regulation applicable to border-gate economic zones.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Trade in, supervising the implementation of issues related to tax-suspension areas.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decision.